Engineers India wins $40m overseas contract

State-owned Engineers India Ltd (EIL) today said it has won a $40 million contract for the Liwa Plastics project of Oman Refineries and Petroleum Industries Co (Orpic).

"EIL has been awarded a project management consultancy (PMC) contract by Orpic for their Liwa Plastics Project in Sohar, Oman against international competitive bidding competition from international consultants," the company said in a statement.

Orpic is owned by the Government of Oman and state-owned Oman Oil Company SAOC and has been created to pursue investment opportunities in the energy sector both inside and outside Oman.

The project, once commissioned, will enhance both fuel and plastics production in Oman. Plastics production will increase to 1.4 million tonnes per annum by 2018 from 200,000 tonnes now, while fuel production will touch 11.3 million tonnes from 7.3 million tonnes.

The feedstock for the plant shall be brought from Fahud, which is 300 km away from Sohar.

Earlier it was envisaged that as much as 60 per cent of the feedstock for the Liwa Plastics project would come from the existing Sohar refinery, while the remaining 40 per cent would be natural gas liquids extracted from the gas in Fahud.

EIL said its contract scope also includes the gas extraction plant at Fahud as well as transfer of natural gas liquids from Fahud to Sohar.

Shares of the company closed over 6.7 per cent up at Rs 199.95 apiece on the BSE.